JLL Residential

City and East sales and lettings market overview

London, 8th February 2017

Activity across Canary Wharf, Stratford and the City in Q4 was much stronger than expected, with 40% more sales applicants and 41% more lettings applicants registering than in 2015. The number of new sales instructions coming on to the market with JLL's Canary Wharf, Stratford and City offices in Q4 2016 was also 2.6 times greater than during the same period last year. Many of these new instructions are from motivated sellers who recognise that the current market offers good opportunities to trade upwards at reasonable cost.

Canary Wharf
Q4 2016 remained stable in the Canary Wharf residential sales market, with some cause for optimism for 2017. There is still a wide choice of available stock in the E14 area, ranging from properties which would suit first time buyers to large penthouses.

Most of the activity has been below the £600,000 bracket post referendum, but Q4 provided some positive signs that this price point may be increasing, with several sales agreed around the £900,000 to £1,250,000 mark.

Stratford
Q4 of 2016 saw strong activity in the Stratford residential sales market, with a good level of applicant registration and a large number of sales agreed. Whilst we have not seen a significant rise in property values, when compared to Q3 of this year prices have remained stable, with average offer price showing a modest increase of 3.47%. Prospects for growth in 2017 are good due to the under-supply of completed new build stock available.

The majority of applicants have been owner occupiers working in the City or Canary Wharf who are drawn to the area for its fantastic transport links and ongoing redevelopment, with circa 25% of sales agreed being to those with funds originating overseas. We are also receiving instructions for an increasing number of properties in existing, purpose built blocks. Many of these new instructions come from motivated sellers looking to realise the fantastic growth they have achieved in the years post the 2012 Olympics. Overall, the continually changing landscape of the area means the outlook for Stratford is an extremely positive one.

City
After a tense few weeks post Brexit, the City market showed encouraging signs of recovery with a strong finish to Q4 2016 and a flurry of exchanges. The weakening of sterling has brought an increase in overseas activity, which in turn, has increased 'UK based' interest.

There is a good selection of both off plan and completed stock still available in the City, with prices ranging from £500,000 (ideal for investors or first time buyers) to higher end apartments in excess of £2,000,000.

There is still some uncertainty in the City as we go into 2017 but with news of large City based companies 'un-freezing' their hiring, we hope to see more investors taking advantage of strong rental demand, and increased levels of owner occupiers returning to the market.